Palo Alto Networks (NASDAQ:PANW) Shares Gap Down - Should You Sell?

Key Points

• Palo Alto Networks (NASDAQ:PANW) shares gapped down from a previous close of $193.84 to open at $180.27, with last traded shares at $180.57 and a trading volume of over 13 million shares.
• Recent analyst ratings show 27 "buy", 13 "hold", and 2 "sell" ratings for the company, with an average target price of $209.42.
• The company's revenue rose by 15.3% year-over-year, reporting $2.29 billion for the latest quarter, along with earnings per share of $0.80, which exceeded estimates.

Shares of Palo Alto Networks, Inc. (NASDAQ:PANW - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $193.84, but opened at $180.27. Palo Alto Networks shares last traded at $180.57, with a volume of 13,132,958 shares.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the company. Jefferies Financial Group set a $235.00 price objective on Palo Alto Networks in a report on Tuesday. Stephens lowered Palo Alto Networks from a "strong-buy" rating to a "hold" rating in a research report on Thursday, May 1st. JPMorgan Chase & Co. reduced their price objective on Palo Alto Networks from $225.00 to $221.00 and set an "overweight" rating for the company in a research report on Wednesday, May 21st. Hsbc Global Res upgraded Palo Alto Networks from a "moderate sell" rating to a "hold" rating in a research report on Thursday, April 10th. Finally, Roth Capital initiated coverage on Palo Alto Networks in a research report on Thursday, May 15th. They set a "neutral" rating and a $210.00 price target for the company. Two research analysts have rated the stock with a sell rating, fourteen have issued a hold rating and twenty-six have assigned a buy rating to the company's stock. According to MarketBeat.com, Palo Alto Networks presently has a consensus rating of "Moderate Buy" and a consensus target price of $209.61.

Palo Alto Networks Stock Performance

The company's 50 day moving average price is $196.32 and its 200-day moving average price is $187.19. The company has a market cap of $115.48 billion, a PE ratio of 99.03, a price-to-earnings-growth ratio of 5.11 and a beta of 0.97.

Palo Alto Networks (NASDAQ:PANW - Get Free Report) last released its quarterly earnings data on Tuesday, May 20th. The network technology company reported $0.80 EPS for the quarter, topping the consensus estimate of $0.77 by $0.03. The company had revenue of $2.29 billion during the quarter, compared to the consensus estimate of $2.28 billion. Palo Alto Networks had a net margin of 13.95% and a return on equity of 19.48%. Palo Alto Networks's revenue for the quarter was up 15.3% on a year-over-year basis. During the same period last year, the firm earned $0.66 EPS. Equities research analysts expect that Palo Alto Networks, Inc. will post 1.76 EPS for the current year.

Insider Transactions at Palo Alto Networks

In other Palo Alto Networks news, EVP Dipak Golechha sold 5,000 shares of the firm's stock in a transaction on Monday, June 23rd. The shares were sold at an average price of $201.85, for a total value of $1,009,250.00. Following the completion of the transaction, the executive vice president directly owned 101,135 shares of the company's stock, valued at $20,414,099.75. This trade represents a 4.71% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Nir Zuk sold 100,000 shares of Palo Alto Networks stock in a transaction on Tuesday, July 1st. The stock was sold at an average price of $198.66, for a total transaction of $19,866,000.00. Following the sale, the executive vice president directly owned 3,243,516 shares of the company's stock, valued at $644,356,888.56. This represents a 2.99% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 569,248 shares of company stock worth $111,279,829. 2.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Palo Alto Networks

A number of large investors have recently added to or reduced their stakes in PANW. Brighton Jones LLC raised its position in Palo Alto Networks by 147.7% in the 4th quarter. Brighton Jones LLC now owns 6,761 shares of the network technology company's stock worth $1,230,000 after purchasing an additional 4,031 shares during the period. Bank Pictet & Cie Europe AG raised its position in Palo Alto Networks by 115.6% in the 4th quarter. Bank Pictet & Cie Europe AG now owns 43,985 shares of the network technology company's stock worth $8,004,000 after purchasing an additional 23,586 shares during the period. Cynosure Group LLC raised its position in Palo Alto Networks by 32.6% in the 4th quarter. Cynosure Group LLC now owns 1,488 shares of the network technology company's stock worth $271,000 after purchasing an additional 366 shares during the period. OneAscent Financial Services LLC increased its position in shares of Palo Alto Networks by 119.5% in the fourth quarter. OneAscent Financial Services LLC now owns 1,995 shares of the network technology company's stock valued at $363,000 after acquiring an additional 1,086 shares during the period. Finally, Disciplined Investors L.L.C. purchased a new position in shares of Palo Alto Networks in the fourth quarter valued at about $235,000. Hedge funds and other institutional investors own 79.82% of the company's stock.

Palo Alto Networks Company Profile

Palo Alto Networks, Inc provides cybersecurity solutions worldwide. The company offers firewall appliances and software; and Panorama, a security management solution for the global control of network security platform as a virtual or a physical appliance. It also provides subscription services covering the areas of threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection, DNS security, Internet of Things security, SaaS security API, and SaaS security inline, as well as threat intelligence, and data loss prevention.